LOGISTICAL BOTTLENECKS CAUSE FERTILIZER TRANSPORTATION TO RISE 21% BETWEEN 2010 AND 2022

A study by EsalqLog-USP reveals that Brazil’s increasing reliance on fertilizer imports, rising from 60% of national demand in 2010 to over 80% in 2022, faces logistical challenges, elevating production costs. The study, covering 2010-2022, attributes higher input costs to a shift toward road transport (86%) over rail (13.6%) in the domestic market. Despite a 23% increase in railway fertilizer movement, demand growth of over 80% hampers diversification. The coordinator of EsalqLog, Thiago Guilherme Péra, notes Brazil’s increased dependence on imports, reaching 86% in 2021, driven by factory closures and soaring grain production. Seasonal road freight prices impact cost structures, with peak imports in September-October and troughs in February-April during significant grain exports. The study identifies port changes, with Santos gaining 4 percentage points due to improved infrastructure.
Source: Nova Cana